Chicago Close
13/12/11 -- Soybeans: Jan 12 Soybeans closed at USD11.18 1/2, up 6 1/2 cents; Mar 12 Soybeans closed at USD11.29, up 6 3/4 cents; Dec 11 Soybean Meal closed at USD282.20, up USD4.10; Dec 11 Soybean Oil closed at 48.99, down 7 pips. South American weather concerns were enough to see beans post modest gains despite a firmer US dollar. Profit-taking and short-covering as we approach year end was also likely a feature. AgRural dropped their Brazilian soybean production estimate by half a million tonnes to 73.1 MMT. Tomorrow's NOPA crush report may offer some information on domestic US demand for beans. The trade is looking for a number around 142.5 million bushels versus 148.9 million a year ago.Corn: Dec 11 Corn closed at USD5.88 1/2, up 3 cents; Mar 12 Corn closed at USD5.94 1/2, up 1/2 cent. Crude oil jumped on reports that an Iranian military exercise was to close the Straits of Hormuz, an important shipping route for crude. Dryness in Argentina’s eastern grain belt in Buenos Aires, Entre Rios and Santa Fe was also supportive. The US dollar rising to eleven month highs capped gains however as too did nagging concerns over European debt. Corn appears to be stuck in a sideways range, seemingly unable to break and hold above USD6.00/bu but with bears lacking the conviction to test USD5.50/bu.
Wheat: Dec 11 CBOT Wheat closed at USD5.91 3/4, up 16 1/4 cents; Dec 11 KCBT Wheat closed at USD6.49 3/4, up 7 cents; Dec 11 MGEX Wheat closed at USD8.51 1/2, up 6 3/4 cents. Egypt bought Russian, Argentine and French wheat in a tender, with US origin once again proving too expensive for the world's largest wheat buyer. Australia is finding that rain does indeed make grain with a potential bin-busting wheat crop that could top 29 MMT this year, according to one report. That would be the second record crop in succession, they still had 8 MMT of last year's production left in store at the beginning of October leaving them a weighty 37 MMT of wheat on their hands. Domestic consumption there is only around 7-8 MMT.
